"We recently accomplished two major milestones. We were issued a US patent for our proprietary Sentinel Principle(R) platform technology and positive validation data was published for a novel blood-based, seven-gene biomarker set that forms the basis of our lead product ColonSentry(TM), the world's first blood test for colorectal cancer," said
Recent highlights:
- Entered into an agreement allowing Eli Lilly and Company (NYSE: LLY)
select access to research from its osteoarthritis genomic biomarker
program.
- Granted a U.S. patent for its core platform technology, the Sentinel
Principle(R), a powerful method for identifying clinically actionable
biomarkers relating to disease and health from a basic blood sample.
- Publication of positive validation data in the International Journal
of Cancer for a novel blood-based, seven-gene biomarker panel for
colorectal cancer that can stratify average risk patients according
to their current relative risk of actually having colorectal cancer,
the basis of the Company's lead product ColonSentry(TM).
- Publication of a paper in the Journal of Clinical Gastroenterology
reporting data using GeneNews' proprietary Sentinel Principle(R)
platform technology to identify complex changes in blood gene
expression patterns that were differentially regulated between active
and inactive Crohn's disease.
- Completed non-brokered, private placement for total gross proceeds in
the amount of $2,000,000.
GeneNews has sufficient funds to continue its operations into the first
quarter of 2010. Efforts to secure access to additional capital resources are
continuing; however there is no assurance that these initiatives will be
successful.
Financial results (CDN dollars) for the third quarter-ended September 30,
2009:
For the three-month period ended
For the three-month period ended
Net loss for the three-month period ended
As at
The Company's annual financial statements and management's discussion and analysis will be available on www.sedar.com.
About GeneNews
--------------
GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized health management based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(TM) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' first product in development, ColonSentry(TM), is a convenient and patient-friendly blood-based test that can assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry(TM), visit www.genenews.com and www.colonsentry.com.
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.
GeneNews Limited
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Expressed in Canadian dollars)
As at
September 30 December 31
2009 2008
$ $
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ASSETS
Current
Cash and cash equivalents 1,331,005 1,414,395
Restricted cash 252,208 1,239,605
Accounts receivable 131,416 549,134
Investment tax credits recoverable 200,000 400,000
Prepaid expenses and deposits 396,285 284,423
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Total current assets 2,310,914 3,887,557
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Property, plant and equipment, net 2,874,722 3,400,298
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5,185,636 7,287,855
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 1,735,683 3,156,397
Deferred revenue 13,500 15,871
Current portion of long-term debt 81,085 1,061,368
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Total current liabilities 1,830,268 4,233,636
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Long-term debt 158,141 219,548
Convertible debentures 2,568,595 729,646
-------------------------------------------------------------------------
Total liabilities 4,557,004 5,182,830
-------------------------------------------------------------------------
Shareholders' equity
Capital stock 47,562,516 44,870,734
Contributed surplus 4,715,964 3,753,924
Deficit (51,649,848) (46,519,633)
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Total shareholders' equity 628,632 2,105,025
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5,185,636 7,287,855
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GeneNews Limited
CONSOLIDATED STATEMENTS OF OPERATIONS
AND DEFICIT
(Unaudited)
(Expressed in Canadian dollars)
Three months Three months Nine months Nine months
ended ended ended ended
September 30 September 30 September 30 September 30
2009 2008 2009 2008
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Revenue
Milestone
revenue $ 34,430 $ 299,828 $ 131,174 $ 882,552
Non-refundable
license revenue 311,684 - 566,144 -
Sales 16,850 2,712 38,100 2,712
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362,964 302,540 735,418 885,264
Expenses
Research and
development 655,575 2,647,640 2,445,131 7,877,621
Sales and
marketing 145,187 319,329 417,689 319,329
General and
administrative 469,786 725,969 1,677,966 2,045,204
Stock-based
compensation 371,585 420,376 962,040 914,914
Amortization of
intellectual
property - 110,537 - 331,611
Interest on
debentures 122,412 - 336,739 -
Interest on long
term debt 4,960 29,554 40,041 88,254
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1,769,505 4,253,405 5,879,606 11,576,933
Interest income 1,083 34,738 13,973 194,432
-------------------------------------------------------------------------
Net and
comprehensive loss
for the period (1,405,458) (3,916,127) (5,130,215) (10,497,237)
Deficit, beginning
of period (50,244,390) (39,929,240) (46,519,633) (33,348,130)
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Deficit, end
of period $(51,649,848) $(43,845,367) $(51,649,848) $(43,845,367)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net and
comprehensive loss
per common share
Basic and
fully diluted $ (0.02) $ (0.07) $ (0.09) $ (0.19)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average
number of
common shares
outstanding
Basic and
fully diluted 62,687,251 56,207,176 58,176,297 56,213,363
-------------------------------------------------------------------------
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GeneNews Limited
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
September 30 September 30 September 30 September 30
2009 2008 2009 2008
-------------------------------------------------------------------------
Cash flows provided by (used in):
Operations:
Net and
comprehensive
loss for the
period $ (1,405,459) $( 3,916,127) $ (5,130,215) $(10,497,237)
Items therein
not requiring
cash
Debenture
interest 122,412 - 336,739 -
Stock based
compensation 371,584 420,376 962,040 914,914
Amortization
of capital
assets 138,274 229,962 530,760 588,326
Amortization of
intellectual
property - 110,537 - 331,611
---------------------------------------------------------------------
(773,189) (3,155,252) (3,300,676) (8,662,386)
Changes in non-
cash working
capital:
Accounts
receivable (17,348) 55,512 417,718 916,995
Investment
tax credit
recoverable - (49,778) 200,000 817,944
Prepaid
expenses and
deposits 31,190 181,144 210,397 238,728
Accounts
payable and
accrued
liabilities (56,807) (62,834) (1,420,714) (79,852)
Deferred
revenue (11,605) (299,829) (2,371) (882,552)
-----------------------------------------------------------------------
(827,759) (3,331,037) (3,895,646) (7,651,123)
Financing:
Net proceeds
from issuance
of convertible
debentures - - 2,193,993 -
Proceeds from
exercise of
employee stock
options - - - 251,100
Proceeds from
issuance of
shares 2,000,000 - 2,000,000 -
Proceeds from
issuance of
shares held
in trust (322,259) - (322,259) -
Restricted
cash 74,956 - 987,396 -
Payments on
long term debt (19,297) 178,255 (1,041,689) (109,901)
-----------------------------------------------------------------------
1,733,400 178,255 3,817,441 141,199
Investments:
Additions to
capital assets - (313,097) (5,185) (546,258)
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Increase (decrease)
in cash and cash
equivalents 905,641 (3,465,879) (83,390) (8,056,182)
Cash and cash
equivalents,
beginning of
period 425,364 6,688,727 1,414,395 11,279,030
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Cash and cash
equivalents,
end of period $ 1,331,005 $ 3,222,848 $ 1,331,005 $ 3,222,848
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplemental
cash flow
information:
Interest
received 1,083 40,905 13,973 164,862
Interest paid 4,960 29,544 40,041 88,254
%SEDAR: 00009903E
For further information: Gailina Liew, Chief Operating Officer, (905) 739-2036, [email protected]; Casey Gurfinkel, (416) 815-0700 x 283, [email protected]
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